Bilateral Cooperation

The Government of the Republic of Kenya has successfully negotiated and signed two bilateral instruments; one with the Republic of South Sudan and the other with the Federal Democratic Republic of Ethiopia.

On 24th January 2012 The Government of the Republic of Kenya and the Government of the Republic of South Sudan signed a Memorandum of Understanding (MoU) to establish the framework for cooperation for the construction of Kenya – South Sudan Oil Pipeline.

In the MoU, the Government of South Sudan has undertaken finance the construction of the Oil Pipeline while the Government of the Republic Kenya shall facilitate the same on Kenya’s’ territory. South Sudan shall pay transit Tariff to Kenya at an agreed rate based international best practices.

On its part, the Government of the Republic Kenya shall provide facillitation for the construction of the oil pipeline through its territory by:

a. undertaking Way leave acquisition
b. providing Security requirements during construction and operations
c. Project approvals, including but not limited to construction permits, Enviornmental impact Assessment and other licences (subject to the laws and procedures in Kenya).
d. Improving the condition of Kitale – Lodwar – Nadapal Road is required as a matter of urgency. Urgent maintenance of the the road to motorable condition will cost Kshs 2 Billion while upgrading the road to Bitumen Standard will cost approx Ksh. 66 Billion.

The signed MoU established the Joint Coordination Commission (JCC) between the Government of the Republic of South Sudan and the Government of the Republic of Kenya to facilitate the implementation of the Lamu – Juba Oil Pipeline and Fibre Optic Project under the LAPSSET Corridor Project.

The first and the second meetings of the JCC have already been held in Kenya on Tuesday 7th February 2012 and on Tuesday 6th March 2012 respectively. Other preparatory working meetings have also been held to prepare project documents such as host-country agreements, pipeline management agreements, EPC Contract Agreements, and project financing agreements among others. The documents will be discussed during forthcoming JCC meetings to be held between 26th and 28th March 2012, in Juba, South Sudan.

The Government of Kenya and the Government of the Federal Democratic Republic of Ethiopia signed a Bilateral Agreement during the official state visit by the Prime Minister of Ethiopia on 1st March 2012 on the development and management of Lamu – Moyale – Addis Ababa Railway Line. The agreement was negotiated between 27th and 28th February 2012. Plans are underway to commence bilateral working meetings for the implementation of the Lamu – Moyale – Addis Ababa Railway line.